News

Contractors higher up the chain could become responsible for salary disbursement

20 June 2018 klockan 08.00

A new law is being introduced concerning the responsibilities of contractors' relating to the requirement of employees to have their salary disbursed. An employee who does not receive a salary for work carried out in connection with a building or construction contract must be able to receive payment from another contractor higher up the chain.

Contracted work of this type refers to companies that have promised to carry out work for a specific amount of money.

The responsibility to disburse salaries should initially fall on the principal, that is, the contractor who has recruited the employee's employer as a sub-contractor. If the principal does not pay or cannot be reached, the contractor highest up in the chain – the main contractor – should have to take responsibility for disbursing the salary. The law will also apply when the employee has been seconded to another location.

The new law and legislative amendments will come into force on 1 August 2018. The Committee on the Labour Market proposes that the Riksdag approves the Government's proposal.